Price Action Forex Trade Setups (NY Close) Apr. 3rd

Dollar Takes No Prisoners Post FOMC No Bond Buying Comments
Already slightly up but cautious ahead of the FOMC minutes, the USD beat up the majors across the board as the Fed gave no new hints or comments about upcoming monetary easing or bond buying to support the struggling economy.  Honestly, it is hard to believe any central banker regarding these things as they have some short circuit in their brains that when things go bad, they hit the CTRL + P button and print more money – find me a central banker recently who has not done this over the last 4 years when things got bad and you have your answer.

Regardless, global investors took this as a sign no QE3 is coming and this hit the stocks with the DOW dropping 64.94pts on the day or .49% and the S&P down 5.66pts or .40%.  Gold, Silver and the majors were also casualties post FOMC comments which surprised traders globally with most expecting further easing.  The market thought free money was coming into the market and the Fed basically said they will only do more easing if things get really bad.

Remember we still have a slew of announcements coming up the rest of this week ahead of the holiday coming this weekend which will surely zap liquidity as the week treads on.  But for now, we expect volatility to be strong until after Thursday London close.

EURJPY – Forex Pin Bar Setup Off Daily 20ema
After getting hammered yesterday, the EURJPY was held up today by the dynamic support coming in today as the daily 20ema forming a forex pin bar setup.  Traders can watch for a pullback into the 20ema for if this holds, there could be a really good setup targeting the 111.00 figure offering a great reward to risk play so watch for the pullback and price action triggers off this level.

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I'm Chris Capre, Founder of 2ndSkiesForex. I help traders of all levels change the way they think, trade and perform. As a professional trader, I specialize in trading price action. As a teacher, my passion lies in showing you how to re-wire your brain for successful trading. Want to improve your edge right now? Visit my Price Action Course page.

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  • Mark


    Thanks for this, however it does seem to be trading below the daily 20ema this morning. what about the outside bearish bar on the 2nd april, it engulfs the 30 march up bar as well as having a higher high and lower low is this not a better signal for a fall to 108.50 the 22 march low?



    PS, bought your advanced course and working my way through it…. massive learning curve.

    • Hello Mark,

      Yes, it is trading below which suggests there could be a strong unwinding from here as it has not been below the 20ema on a closing basis in some time so im now thinking short and a possible unwind to 106 or more.

      Glad to hear your enjoying the course and that its helping your learning curve.

      See you on the traders forum.

      Kind Regards,